Constellation Brands announced full redemption of 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026.
Quiver AI Summary
Constellation Brands has announced plans to redeem all outstanding 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026, amounting to $900 million, prior to their maturity dates. The redemption will take place on July 2, 2025, and June 12, 2025, respectively, with the precise cash redemption price to be calculated according to the notes' supplemental indentures. The company, a major player in the beverage alcohol industry with a diverse portfolio of brands including Corona and Modelo, clarifies that this press release does not serve as a formal notice of redemption. It also includes forward-looking statements about future events and cautions that actual results may vary due to various risks.
Potential Positives
- Constellation Brands is proactively managing its debt by giving notice for full redemption of all outstanding Senior Notes, indicating a strong financial position.
- The redemption of $900 million in aggregate principal amount of notes prior to maturity demonstrates the company’s commitment to financial stability and shareholder value.
- Completing these redemptions may lead to reduced interest expenses in the future, potentially benefiting the company's profitability.
Potential Negatives
- The redemption of the senior notes may indicate liquidity concerns for Constellation Brands, as it could imply the company is prioritizing immediate cash needs over maintaining long-term debt obligations.
- The significant amount of $900 million in outstanding notes being redeemed prior to maturity could reflect potential challenges in managing debt levels effectively.
- The press release includes a cautionary statement regarding forward-looking statements, which may highlight uncertainty about the company's future performance and plans.
FAQ
What notes is Constellation Brands redeeming?
Constellation Brands is redeeming its 4.75% Senior Notes due 2025 and 5.00% Senior Notes due 2026.
When will the redemption occur?
The redemption will take place on July 2, 2025, for the 2025 notes and June 12, 2025, for the 2026 notes.
How much in total principal amount of notes is outstanding?
As of June 2, 2025, there are $900.0 million in aggregate principal amount of the notes outstanding.
What will be the method of payment for the redemption?
The redemption price for the notes will be payable in cash, calculated according to the supplemental indentures.
Where can I find more information about the redemption?
More information regarding the redemption terms and conditions is available in notices distributed to noteholders by the trustee under the indenture.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$STZ Congressional Stock Trading
Members of Congress have traded $STZ stock 5 times in the past 6 months. Of those trades, 1 have been purchases and 4 have been sales.
Here’s a breakdown of recent trading of $STZ stock by members of Congress over the last 6 months:
- SENATOR TOMMY TUBERVILLE sold up to $50,000 on 04/15.
- REPRESENTATIVE ROBERT BRESNAHAN purchased up to $15,000 on 04/08.
- REPRESENTATIVE JULIE JOHNSON has traded it 2 times. They made 0 purchases and 2 sales worth up to $30,000 on 04/01, 01/15.
- SENATOR MARKWAYNE MULLIN sold up to $50,000 on 02/13.
To track congressional stock trading, check out Quiver Quantitative's congressional trading dashboard.
$STZ Insider Trading Activity
$STZ insiders have traded $STZ stock on the open market 2 times in the past 6 months. Of those trades, 1 have been purchases and 1 have been sales.
Here’s a breakdown of recent trading of $STZ stock by insiders over the last 6 months:
- SAMUEL J GLAETZER (EVP & Pres. Wine and Spirits) sold 3,150 shares for an estimated $593,901
- WILLIAM T GILES purchased 1,000 shares for an estimated $186,390
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$STZ Hedge Fund Activity
We have seen 484 institutional investors add shares of $STZ stock to their portfolio, and 926 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BERKSHIRE HATHAWAY INC added 6,384,676 shares (+113.5%) to their portfolio in Q1 2025, for an estimated $1,171,715,739
- MORGAN STANLEY removed 4,741,716 shares (-58.9%) from their portfolio in Q1 2025, for an estimated $870,199,720
- FMR LLC added 3,387,870 shares (+206.4%) to their portfolio in Q1 2025, for an estimated $621,741,902
- CAPITAL WORLD INVESTORS added 3,027,001 shares (+31.0%) to their portfolio in Q1 2025, for an estimated $555,515,223
- VANGUARD GROUP INC added 2,882,817 shares (+18.6%) to their portfolio in Q1 2025, for an estimated $529,054,575
- WELLINGTON MANAGEMENT GROUP LLP added 2,514,517 shares (+127.9%) to their portfolio in Q1 2025, for an estimated $461,464,159
- MITSUBISHI UFJ ASSET MANAGEMENT CO., LTD. removed 1,887,923 shares (-86.8%) from their portfolio in Q1 2025, for an estimated $346,471,628
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$STZ Analyst Ratings
Wall Street analysts have issued reports on $STZ in the last several months. We have seen 3 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- Barclays issued a "Overweight" rating on 04/14/2025
- Needham issued a "Buy" rating on 02/10/2025
- Piper Sandler issued a "Overweight" rating on 02/10/2025
To track analyst ratings and price targets for $STZ, check out Quiver Quantitative's $STZ forecast page.
$STZ Price Targets
Multiple analysts have issued price targets for $STZ recently. We have seen 4 analysts offer price targets for $STZ in the last 6 months, with a median target of $210.0.
Here are some recent targets:
- Bill Chappell from Truist Financial set a target price of $215.0 on 05/07/2025
- An analyst from Barclays set a target price of $205.0 on 03/13/2025
- An analyst from RBC Capital set a target price of $289.0 on 03/07/2025
- Dara Mohsenian from Morgan Stanley set a target price of $202.0 on 02/27/2025
Full Release
ROCHESTER, N.Y., June 02, 2025 (GLOBE NEWSWIRE) -- Constellation Brands (NYSE: STZ), a leading beverage alcohol company, announced today that it has given notice for full redemption prior to maturity of all of its outstanding 4.75% Senior Notes due 2025 (CUSIP Number: 21036PAP3) and 5.00% Senior Notes due 2026 (CUSIP Number: 21036PBN7) (collectively, the ”notes”) to be effected on July 2, 2025 and June 12, 2025, respectively. As of June 2, 2025, there were $900.0 million in aggregate principal amount of the notes outstanding.
The redemption price for the notes, payable in cash, will be calculated pursuant to the formula set forth in the supplemental indentures relating to the notes.
This press release shall not constitute a notice of redemption of the notes. Information concerning the terms and conditions of the redemption of the notes is described in the notices distributed to holders of the notes by the trustee under the indenture and the applicable supplemental indentures governing the notes.
ABOUT CONSTELLATION BRANDS
Constellation Brands is an international producer and marketer of beer, wine, and spirits with operations in the U.S., Mexico, New Zealand, and Italy. Constellation’s brand portfolio includes Corona Extra, Modelo Especial, Modelo Chelada, Pacifico, Victoria, The Prisoner Wine Company, Robert Mondavi Winery, Kim Crawford, Schrader Cellars, Lingua Franca, Casa Noble Tequila, and High West Whiskey.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements which are not historical facts and relate to future plans, events, or performance are forward-looking statements that are based upon management’s current expectations and are subject to risks and uncertainties. The forward-looking statements are based on management's current expectations and should not be construed in any manner as a guarantee that such events or results will in fact occur. All forward-looking statements speak only as of the date of this news release and Constellation Brands undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Detailed information regarding risk factors with respect to the company are included in the company’s filings with the SEC.
| MEDIA CONTACTS | INVESTOR RELATIONS CONTACTS |
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Amy Martin 585-678-7141 /
[email protected]
Carissa Guzski 315-525-7362 / [email protected] |
Joseph Suarez 773-551-4397 /
[email protected]
Snehal Shah 847-385-4940 / [email protected] David Paccapaniccia 585-282-7227 / [email protected] |
A downloadable PDF copy of this news release can be found here .
